Related Articles:

How do you gauge what the franchisor/franchisee relationship is like within the system you’re interested in? Can you predict whether the franchisor will respect your voice as a franchisee…or disregard you completely? While franchise relationships may be difficult to decipher, there are a few objective factors that could provide clues when researching a franchise.

Here are some questions you must ask a franchisor and have them answer before buying into their system:

Is the market for the product or service of the franchise program strong, or is it declining?

Is there an independent franchisee association in the system?

How does the franchisor handle competition issues between its franchisees?

What were the typical store sales last year, and what is the range of sales?

What process has the company put in place for the governance of the system? Do franchisees have a say in the development of new products or services?

About the Author

Franchise Zone is published by Entrepreneur Media SA. It offers advice and franchising opportunities in South Africa.

Disclaimer: Reliance on the information this site contains is at your own risk. Readers are advised to consult their attorney and/or financial advisor prior to pursuing any investment. Please read our Editorial Disclaimer and Terms & Conditions of Use.

Is this information out of date or incorrect? Report it to our webmaster.